Infectious animal diseases have become prevalent occasionally in developing countries due to their weak animal health system and hinder their potential of livestock and livestock product exports. Mongolia since the early 2000s has experienced frequent outbreaks of foot-and-mouth disease (FMD) that result in prolonged quarantine in affected areas. Difference-in-Differences estimates suggest that herders in the quarantine zones had smaller herds, especially smaller cattle herd after the quarantine. We also observe a significant decrease in byproduct sales revenue and feed cost. We find, however, null evidence that FMD quarantine negatively impacted household’s farm income, farm profit, or total income.